TSMC Reports Third Quarter EPS of NT$1.90

Hsinchu, Taiwan, R.O.C., October 25, 2012 -- TSMC today announced consolidated revenue of NT$141.38 billion, net income of NT$49.30 billion, and diluted earnings per share of NT$1.90 (US$0.32 per ADR unit) for the third quarter ended September 30, 2012.

Year-over-year, third quarter revenue increased 32.8% while both net income and diluted EPS increased 62.2%. Compared to second quarter of 2012, third quarter of 2012 results represent a 10.4% increase in revenue, and a 17.9% increase in both net income and diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

In US dollars, third quarter revenue increased 9.5% from the previous quarter and increased 29.5% year-over-year.

Gross margin for the quarter was 48.8%, operating margin was 37.2%, and net margin was 34.9%.

Shipments of 28-nanometer process technology more than doubled during the quarter and accounted for 13% of total wafer revenues. 40-nanometer accounted for 27% of total wafer revenues, and 65-nanometer was 22%. These advanced technologies accounted for 62% of total wafer revenues.

“Due to the strong demand for our advanced technologies, we have enjoyed a record quarter of both revenue and net income in the third quarter,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “However, we expect the IC supply chain to begin reducing inventories in the fourth quarter, which will affect the demand for our wafers. Based on our current business outlook and exchange rate assumption of 1 US dollar to 29.47 NT dollars, management expects overall performance for fourth quarter 2012 to be as follows”:

• Revenue is expected to be between NT$129 billion and NT$131 billion;
• Gross profit margin is expected to be between 45% and 47%;
• Operating profit margin is expected to be between 33% and 35%.